a. Assessment of the significant forces that have shaped operations management in recent history and how did the forces impact the business operations of AEE Company.
In the contemporary times, innovation in technology has compelled almost all organizations that fall in all the sectors that include social, economic as well as political embrace technology supported operations and processes and American Abyss Express (AAE) is no exemption. Innovation and technological advancement has, thus, shaped operations management history when compared to the past where technology had not been embraced fully as when compared to the present times. More developments regarding the continuous growth and expansion of technology innovation continue to be experienced in the current times. It has also linked and includes the mainstream media as well as social media technology supported platforms that continue to impact on the operations management presently. Globalization concept has also played an essential role that has shaped and changed operations management techniques and approaches (Bo He, Qihang Fu & Xueping Li, 2017). The Globalization concept has resulted in liberated markets that have increased opportunities for businesses in the world stage as well as increased competition for businesses. It has prompted business to react to such changes that have ultimately changed the business operations. Additionally, the global trends have also resulted in the formation of a worldwide culture that most business operations and management have emulated. It has contributed significantly to changing the operations management. Next, the contemporary business and modern lifestyle have also played an essential part in instituting changes to the current business operations management. The modern lifestyle has changed market preferences, and consumer tastes and, thus, business respond to such changes to institute measures that would enhance and improve interactions between and among potential stakeholders in the business operations and processes embraced by a business organization. Competition and research also play a significant role in changing business operations as witnessed presently when compared to the past. The level of competition experienced presently is stiff contributed by many factors that have compelled business operations management to instill changes that enhance its competitiveness (Kaewfak & Ammarapala, 2018). It increases the chance of such business realizing their desired established business goals and objectives in the short and long-term. Finally, research in effective business operations and management has also contributed to the noted changes in the recent times that show changes when compared to the past. The research findings and outcomes have empowered business to institute changes due to evidence and prove that show the effectiveness of different changes in operations and management processes in a business.
Delegate your assignment to our experts and they will do the rest.
The mentioned forces have impacted the business operations of AAE Company that has shaped its vision and mission that targets the global market in logistics and transport service delivery. It has designed its processes and operations that embraced the use of information technology supported platforms. Such as the one that allows its clients and stakeholders to track the processes and stages of the different service delivered by the company among other measures that resonate to the mentioned forces that have shaped the operations management in recent history. AAE Company has developed its strategy and vision in the short and long-term by including the forces that change recent history in operations and management. It is irrespective of the company current profile as a small business that is venturing in an already established logistics industry that has already big players and names such as Amazon, UPS, and FedEx in the business and industry of logistics and transportation. AAE Company, thus, has to continue to design and implement its operations management to conform to the recent trends that continue to shape and change business operations as experienced in recent times. They include innovation in technology, competition aspects, globalization concept and impact to the business including the global trends, research as well as modern lifestyles. It has compelled business to conform to the current trends in consumption and life preferences for the diverse market segments globally.
b) Critique of the key obstacles and issues that confronted company management during the evolution of operations management into the modern era and how the company’s management handles the obstacles.
The introduction of the current operations management strategies for business that reciprocate to the forces that shape the operations management came with a cost that business operations had to incur. To implement and apply some of the strategies and changes that touched on critical stakeholders linked with the AEE Company business. The company as a young company has not established a stable financial position in the industry due to the level of its operations and years that it has operated. As a young company, AEE has had financial challenges in executing some of the operations management and operations, unlike its competitors that have already established broad financial spectrum that they source resources to implement such changes in operations. For example, the changes that involve the use of Information Technology systems have proved to be costly for the acquisition of the hardware’s and software’s that support such current operations in management systems. And, thus, the lack of an adequate financial position for a company might place it at a disadvantage where it might limit its approaches in the implementation of such changes. It is due to limited financial situation and options that it has that might affect and hinder it from realizing its full potential. AAE company opted to implement strategies that help it achieve its goals by embracing the most straightforward options and strategies that support information technology such as enabling clients and other interested stakeholders track the shipment and logistics aspects online through their websites by registering and logging in the website. The website has also played an essential role that helps the company achieve its business goals by providing different information to the stakeholders concerned. They include clients on the various services and products the AAE Company offers including essential information concerning shipping, tracking, contacts, and news about the company among others. They all play a vital role in enhancing the company goals and objectives in the business operations, and management approaches it has established. AAE Company has also continued to look for alternative source of funding to support its operations in the logistics business such as the acquisition of capital goods that include trucks that it uses for its logistics and transportation business. It has established strategies that convince major financial partners of smooth operations and effective business management plans that easily convince its financiers to support their business operations. However, it also tries to limit costs by enhancing self-sustaining approaches that would limit and reduce the debt that the company has that might restrict its rapid growth and expansion. The financial position has put AAE company has a competitive disadvantage when compared to its rivals that have been in the industry for long and have established stable financial positions. However, the market segment that AAE company targets include small business and, thus, it has used pricing strategies and costs reduction to help it enhance its market penetration among other options. It provides for discounts to help it realize its growth and expansion in the industry and market. Training of its employees on the new technology supported operations systems and platforms also are encouraged by the AAE Company where their employees have been trained on the different technology used by the company that supports operations and management processes. The training has also included internal marketing approaches that AAE company uses that enhance effective customer care.
c) An assessment of changes to operations management philosophies and organizational structures in response to the evolving complexity of business operations.
The operations management philosophies and organizational structures of AAE Company among others have changed in response to the evolving complexities of business operations. The business environment has changed that has compelled the business organizations to reciprocate to such changes for them to remain competitive and realize their desired business goals and objectives (Cao, 2018). The primary basis and foundations that guided the business decisions regarding operations and management have shown broader changes when compared to the past. The main changes have targeted to improve efficiency concerning communication, production and output, administration and decision-making aspects that impact on all concerned stakeholders. The new complexity that supports communication for the business has encouraged the use of mainstream and social media platforms to reach the targeted audience and also enhance communication aspects. AEE Company is not exempted where it has social media platforms that include Facebook, Twitter handle, YouTube page among others that it uses to enhance communication with different stakeholders the business operation is involved with. Such communication changes have been implemented to reciprocate to the global trends of the consumer and potential clients of the business. The internet innovation and expansion has also encouraged more extensive use of social media platforms and, thus, the company is compelled to reciprocate to such complexities of its business operations. The payment options have also changed where the use of online payment systems is supported by the company as a global trend when payments are online as well as orders and others business transactions and initiatives (Heinrich, Merkle, Henss & Paech, 2017). The old methods where business transactions had to be done more often physically has passed where presently payment options including the making of orders and other business transaction are done with ease online. Such changes reciprocate to the global trends and demands about financial transactions. The training and skills set required also enhanced training of workers and employees of the business that has incorporated the information technology and computer-related skills that most of the operations management systems are designed. The training in the new skill set is to enhance the effectiveness of the employees and place them in a better position to use the capital goods provided. It improves operations and management systems in the business world as experienced presently that has many complexities regarding operations. Finally, organizations structures have also changed to include the information and communication department that has mainly focused on provision and maintenance of systems that use IT to enhance business organizations goals and processes linking different stakeholders with the business. Such changes are instituted to provide the required support that would give and to improve sustainability regarding complex business operations. Decision-making, hence, has become more comfortable with approaches employed by the business organizations that target to address the complexity of business operations that has made monitoring and evaluation of the business system much easier.
d) Analysis of the business operations of AEE Company.
The business operations of AAE Company have established smaller organization structures where the decisions makers are limited headed by the CEO. The linear leadership roles created by the company makes and enhances easy decision making. It also saves on costs as a young company that has ventured in the logistics business and industry but has prospects to rearrange the organization's structure when it starts growth and expansion plans in the future as envisioned in its mission and goals. It projects the company to operate globally in its long-term plans. The organization process targets to reduce costs. Also, it encourages savings that are channeled towards the expansion programs of the company. The business operations have supported strategic plans, mission, and vision of the company by aligning the decision made to the strategic plans that enhance AAE Company realization of set targets and goals in the logistics business. The business operations set the target that it desires to achieve internally and externally that guide the actions and decisions made by the company that supports the strategic plans that it has aligned to the goals, mission and vision of the company as a global player in the logistics industry. It has embraced simplicity in implementation of different approaches and strategies that support its current financial positions and capacities for growth and development and unlike its competitors that have already established market bases and other advantages that include stable financial position. The strategic plans developed by AAE Company, hence, conform to the business reality and analysis of the current situation of the business as a young business. It targets to grow and expand in the future to achieve a recognizable and respected brand and image in the logistics business world and industry.
The factors that affect productivity and profitability include the cost of operations that AEE Company has strived to minimize as one of its market penetration strategies include pricing and discounting to target clients. And, thus, it implies that it targets to attempt and reduce costs of operations and production for the business to implement the strategy and plan. It has also trained and invested in the training of its employees to enhance productivity and efficiency regarding output and performance that has also provided a competitive advantage to the business in its long-term and sustainable approaches to increase profitability and productivity.
e) The key trends in production, quality, resource, and information management with a focus on the business operations of AEE Company
The key trends in the logistics business that AEE Company operates include the use of information technology and related software’s that support and encourage easy tracking of goods and services offered by a company. Clients and concerned stakeholders have been able to track the processes, and different stages that different services and products offered have reached enhancing their preparation to use the delivered goods. Insurance is also an essential aspect where many companies have insured their business from potential risks that also covers the client’s products and goods so that it encourages business and retention of clients (Voynarenko, Dzhuliy, Kuzmina & Yanchuk, 2017). It has also enhanced packaging and handling of the goods to limit possible damages and costs that might arise from such damages. The pricing strategy also encourages different approaches where clients and companies in the industry base their pricing strategy based on the weight of the goods transported as well as the size. Others have averaged on the distance covered as well as the delicacy of the freighted products. It has, hence, resulted in different pricing strategies by the different logistic company. Additionally, the company has embraced online payment systems and services that have broadened the transactions options. It encourages increased business for the logistic company bearing in mind that most companies operate globally that compels them to initiate such online payment systems (Mora-Ochomogo, Mora-Vargas & Serrato, 2016). It enhances trade and transactions in the logistics industry. The time aspect that the business provides for the goods transported has also played an essential role in clients decision-making for providing companies with the business opportunities. It has, thus, prompted the company to embrace and use the fastest means and approaches possible to give the quickest services. Warehousing also plays an essential role in the determination of the pricing strategy employed where the lesser time the good spent in the warehouses, the lower the costs they pay for such services.
f) Assessment of the impact of the key trends on the business operations of AEE Company and the business product, service, or another idea in the business plan
The effect that the key trends have to the AEE Company is enormous that has compelled it to design its strategic plans and vision that conform to the global patterns. For example, AEE Company has different online payments supported systems to encourage business transactions with various stakeholders in the business. It also has enabled and includes information systems that allow tracking of goods transacted by the company where clients establish online accounts. It provides a user-friendly interface between the clients and the organizations enabling them to track the development and processes of such transactions. AEE Company has also enhanced speedy delivery of goods and services provided and have different pricing options and strategies that include a discount for clients that pay bills on time and clear the warehouse on time among other possibilities.
References
Bo He, Qihang Fu, & Xueping Li. (2017). Evaluation of Logistics Industry Development and Analysis of Its Spatial Agglomeration. Revista de La Facultad de Ingenieria , 32 (13), 15–24. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=126771143&site=ehost-live
Cao, C. (2018). Measuring Sustainable Development Efficiency of Urban Logistics Industry. Mathematical Problems in Engineering , 1–9. https://doi.org/10.1155/2018/9187541
Heinrich, R., Merkle, P., Henss, J., & Paech, B. (2017). Integrating business process simulation and information system simulation for performance prediction. Software & Systems Modeling, 16 (1), 257–277. https://doi.org/10.1007/s10270-015-0457-1
Kaewfak, K., & Ammarapala, V. (2018). The Decision Making of Freight Route in Multimodal Transportation. Suranaree Journal of Science & Technology , 25 (1), 1–10. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=129583528&site=ehost-live
Mora-Ochomogo, E. I., Mora-Vargas, J., & Serrato, M. (2016). A Qualitative Analysis of Inventory Management Strategies in Humanitarian Logistics Operations. International Journal of Combinatorial Optimization Problems & Informatics, 7 (1), 40–53. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=115302249&site=ehost-live
Voynarenko, M., Dzhuliy, L., Kuzmina, O., & Yanchuk, T. (2017). Managing the Development of Innovation Business Processes with Automated Information Systems. Marketing & Management of Innovations , (4), 133–148. https://doi.org/10.21272/mmi.2017.4-12
